Saxon Financial announced today the launch of a principal-protected note linked to the performance of Saxon Balanced Fund.

Investors in the new Bank of Montreal Saxon Balanced Protected Deposit Notes can participate in up to 200% of the potential returns from the award-winning fund while enjoying the safety of 100% principal protection if held until maturity. The term of the Deposit Notes is 5.5 years.

“This new product is tailor-made for those heading for retirement, wanting a balance between wealth preservation and growth potential,” said Allan Smith, president and CEO of Saxon Financial. “The proven performance of Saxon Balanced Fund makes it ideally suited for the leveraged growth potential of the principal protected note.”

Saxon Balanced Fund’s long-term performance features maximize the benefits of the potential use of leverage. The fund has a five-year compounded return of 9.5%. It has produced positive returns in 13 of the past 15 years, and has low volatility given the high equity weighting which currently stands at 70%.

“In launching the Deposit Notes, Saxon again demonstrates its commitment to fair pricing,” Smith said. “With a maximum all inclusive fee of 2.45%, the Deposit Notes are priced well below similar products, many of which charge 2.95%. And for younger investors – or anyone comfortable with a little more risk – Saxon Balanced Fund is still available at an MER of 1.86%.”

The principal-protected note offering is the second product that Saxon has launched this year for the advisor channel. In June, Saxon launched F-class shares for the fee-based advisor segment, in addition to a Web site for advisors, Advisor Insight.